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Don't Lose Your Home to Foreclosure

By
Real Estate Agent with Own Realty Group

 

Don't Lose Your Home to ForeclosureA short sale is the sale of real estate in which the sale proceeds are less than the balance owed on the property.  

It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a loss is better than foreclosing. Click here for details

How it Works
  • Both parties consent to the short sale process, which allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency.
  • The bank or mortgage lender agrees to discount the loan balance because of an economic or financial hardship on the part of the borrower. 
  • The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender. 
For borrowers who owe more on their mortgage than their property is worth and are having trouble selling, short sales present an opportunity for them to avoid foreclosure as a result. 

 

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